Sam Chang buys ground lease on Garment District retail strip

Hotelier Sam Chang’s latest play is in the Garment District, where he just acquired a 99-year ground lease on a one-story retail strip for $27.1 million, according to property records filed with the city Monday.

Bryant Park-based landlord Joseph P. Day Realty Corp owns the property, which holds a row of five retail units spanning more than 7,400 square feet.

But the site also holds nearly 75,000 buildable square feet, potentially making it ripe for the Great Neck-based investor’s latest Manhattan hotel development. McSam has yet to file a permit application for demolition or for a new building.

Chang also has a right of first offer to purchase 523-529 Eighth Avenue outright under the terms of its lease agreement, according to the memorandum of lease filed with the city.